Fed Ex, Krausz projects move forward

Published: Tuesday, June 18, 2013 at 9:18 p.m.

Last Modified: Tuesday, June 18, 2013 at 9:18 p.m.

The Marion County Commission and Ocala City Council advanced two economic development projects on Tuesday by formalizing infrastructure agreements with FedEx Ground Package System Inc. and promising a total of $22,000 in incentives to Krausz Industries Ltd.

Both government bodies voted to approve contracts that will allow FedEx Ground to close on roughly 150 acres of land owned by Bill Kearns' Ocala 489 LLC east of Interstate 75 and north of U.S. 27, property more commonly known as the Magna land and more recently as the Ocala/Marion County Commerce Park.

"They are trying to close before the end of the month," said Tye Chighizola, the city's growth management director. "They just needed to make sure they could provide access."

The city and county are pledging to begin construction on various aspects of the Northwest 35th Street road project through the commerce park by October. The city will move gas and electric lines and run water and sewer lines to the project. The work is to be completed by May 2014, when FedEx is expected to begin construction on the first phase of its project, which includes five building, the largest being a 403,139-square-foot distribution building.

The cost of extending water and sewer lines, moving gas and electric lines and building a road through the property will cost the city and county about $3.47 million. The Florida Department of Transportation and Department of Economic Opportunity will contribute $2.15 million for the work, and the federal Economic Development Administration will provide $800,000.

City and county officials also joined forces to help Krausz Industries Ltd., an Israeli company that specializes in engineering and manufacturing products for the potable water industry, establish a United States headquarters in Ocala.

The city and county together have agreed to equally share in providing a $22,000 incentive, as the local 20 percent local match required for the company to be eligible for a state Qualified Target Industry grant. The grant requested from the state Department of Economic Opportunity is $110,000, with the state providing $88,000 of that.

The approval is subject to a successful examination of Krausz's financial records by the Ocala-Marion County Chamber Economic Partnership, which has brought the company to the local governments' attention.

Melanie Gaboardi, the city's senior manager for economic development, said Krausz has a number of locations it is considering in Ocala.

"It appears they are going to move as quickly as they can," Gaboardi said. "Indicators are that they would want to at least start business by the end of summer," Gaboardi said.

Both companies are making investments in the community and are bringing much-needed jobs.

FedEx Ground has plans to invest roughly $122.9 million in buildings and equipment and an estimated $9.9 million for land. It will provide 165 full-time equivalent jobs — meaning some jobs will be full-time and some will be part-time — paying the equivalent to Marion County's average annual wage of $31,536.

Krausz is expected to create 22 new full-time jobs within a year that pay an annual average wage of $68,000.

<p>The Marion County Commission and Ocala City Council advanced two economic development projects on Tuesday by formalizing infrastructure agreements with FedEx Ground Package System Inc. and promising a total of $22,000 in incentives to Krausz Industries Ltd.</p><p>Both government bodies voted to approve contracts that will allow FedEx Ground to close on roughly 150 acres of land owned by Bill Kearns' Ocala 489 LLC east of Interstate 75 and north of U.S. 27, property more commonly known as the Magna land and more recently as the Ocala/Marion County Commerce Park.</p><p>"They are trying to close before the end of the month," said Tye Chighizola, the city's growth management director. "They just needed to make sure they could provide access."</p><p>The city and county are pledging to begin construction on various aspects of the Northwest 35th Street road project through the commerce park by October. The city will move gas and electric lines and run water and sewer lines to the project. The work is to be completed by May 2014, when FedEx is expected to begin construction on the first phase of its project, which includes five building, the largest being a 403,139-square-foot distribution building.</p><p>The cost of extending water and sewer lines, moving gas and electric lines and building a road through the property will cost the city and county about $3.47 million. The Florida Department of Transportation and Department of Economic Opportunity will contribute $2.15 million for the work, and the federal Economic Development Administration will provide $800,000.</p><p>City and county officials also joined forces to help Krausz Industries Ltd., an Israeli company that specializes in engineering and manufacturing products for the potable water industry, establish a United States headquarters in Ocala.</p><p>Councilwoman Suzy Heinbockel voted against giving incentives to Krausz.</p><p>The city and county together have agreed to equally share in providing a $22,000 incentive, as the local 20 percent local match required for the company to be eligible for a state Qualified Target Industry grant. The grant requested from the state Department of Economic Opportunity is $110,000, with the state providing $88,000 of that.</p><p>The approval is subject to a successful examination of Krausz's financial records by the Ocala-Marion County Chamber Economic Partnership, which has brought the company to the local governments' attention.</p><p>Melanie Gaboardi, the city's senior manager for economic development, said Krausz has a number of locations it is considering in Ocala.</p><p>"It appears they are going to move as quickly as they can," Gaboardi said. "Indicators are that they would want to at least start business by the end of summer," Gaboardi said.</p><p>Both companies are making investments in the community and are bringing much-needed jobs.</p><p>FedEx Ground has plans to invest roughly $122.9 million in buildings and equipment and an estimated $9.9 million for land. It will provide 165 full-time equivalent jobs — meaning some jobs will be full-time and some will be part-time — paying the equivalent to Marion County's average annual wage of $31,536.</p><p>Krausz is expected to create 22 new full-time jobs within a year that pay an annual average wage of $68,000.</p><p><i>Contact Susan Latham Carr at 867-4156 or susan.carr@starbanner.com.</i></p>